Noble's return on equity was:
A) 10%.
B) 13%.
C) 21%.
D) 1.73.

Name: Noble's return on equity was: A) 10%. B) 13%. C) 21%. D) 1.73.
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Question

Quizplus · Accepted Answer

Return on equity (ROE) is calculated by dividing net income by shareholders' equity. 
ROE = (Net Income / Shareholders' Equity) * 100
From the given information, we can calculate ROE as follows:
ROE = (Net Income / Shareholders' Equity) * 100
21% = (Net Income / $80 million) * 100
Net Income = $16.8 million
Therefore, Noble's ROE is 21%, which is option C.

Noble's Return on Equity Was